Investments

Safe investments in Canada: learn the best options

You don't have to take big risks to invest your money. Pick a low-risk investment. You will find some of them in this article.

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Find the best options of investments choices: low-risk to keep your investments safe.

safe investments in Canada
Keep your money safe with these low-risk investments in Canada. Source: Adobe Stock.

If you are a more conservative investor, you will like knowing these safe investments in Canada. After all, sometimes it’s better to be safe than sorry.

Investment is not an easy topic for everybody, and some people have a fear of losing their money. And it can happen if you have a high-risk portfolio and little experience in the field. It is not uncommon to know about investors who got caught by the syren’s chant of high earning potential. They put all their money on it, believing they will get millionaires, but end up with nothing on their hands. 

But you don’t have to risk too much. These naive investors are too ambitious and think they can solve all their lives in one single bet. You can be smarter than that. Respect your hard-earned money by making conscious investment moves. After all, you are better with a smaller profit than no profit and no more money to invest.

There are plenty of options for low-risk investments in Canada, and you can earn a good amount of money with them too. Work smart so you don’t have to work hard again to recover from a big loss. Of course, low risk does not mean that there is no risk at all. You will always have to keep an eye on your nest to keep it growing and healthy.

Keep reading this article, and check some of the best options for you to invest with the best available safe investments in Canada.

Safe investments in Canada: what is a low-risk investment?

safe investments in Canada
What is a low-risk investment? Source: Adobe Stock.

So, what defines a low-risk investment? What is the rule to measure this risk? This aspect is not subjective to the investor’s perception.

A low-risk investment in Canada will have some characteristics. It may have low fluctuation, which makes it pretty predictable, and consequently, the risk of a sudden turn down that gets you out of nothing is lower. If it eventually starts to go down, you’ll have time to protect yourself.

Another aspect that can make an investment be considered low-risk is if it gives you a fixed-rate interest. Also, the ones that give you good liquidity without high penalties for withdrawing your money. 

But the risk tolerance may vary from investor to investor. Risk tolerance says how much risk you are willing to take on your portfolio. As low-risk investments tend to give less return, it would be beneficial to have a diversified portfolio with different risk levels.

But it is entirely personal, and if you’re not willing to take any risk at all, it is totally fine. You are not a better or worst investor if you choose to play safe. After all, we’re talking about real money, not a video game. You are free to choose whatever you want to do with your money. 

If you’d like to choose some low-risk investments in Canada, keep reading this article to find which one you prefer. If you’d like the lower low-risk or the regular low-risk. It’s up to you, and you are already awesome to be here looking out to educate yourself about this important topic. Keep learning about investments and don’t give up. Take your time and you’ll see the return of your dedication.

What are the best and most safe investments in Canada?

GIC
GIC is one of the recommended safe investments in Canada. Source: Adobe Stock.

Pay attention: one of these investments might be just what you are looking for. Let’s learn more about them.

High-Interest Savings Account

This investment is straightforward. The best way to save money while earning some interest and keeping your liquidity at its highest. There is no limit on how much you can deposit on it. Also, you can take any amount of money whenever you want to. 

However, even if its name says “high-interest’, it is not that high compared to many other investments. It is just a good way to keep your money from losing too much value with inflation by earning some minimal interest on it. Think about it as a safe spot until you accumulate enough to have confidence and invest in something else.

Certificates of Deposit (CD)

This option is for the ones who don’t care about letting the money be trapped for the long term. When you buy a Certificate of Deposit, you make an agreement to let your money there for some time, from months or even years.

The longer the term, the higher your earnings. It is pretty safe because you are guaranteed to get a fixed amount for your investment. However, it will be good to have an emergency fund to count on. Otherwise, if you need to withdraw your money before your CD matures, you’ll pay fees that will let you with no earnings.

Dividend ETF

ETFs are known for being safe and providing you with a diversified portfolio with minimum effort. These Exchange-traded funds work as a nest of different assets. As it is very unlikely that they all go down at the same time, this is considered to be an investment with lower risk. 

Guaranteed Investments Certificates (GIC)

When you put your money at a GIC, it is completely safe. However, you will not be able to use it before the terms mature. Just like Certificates of Deposit. you will choose for how long you’d like to keep your investment at the GIC. It usually ranges from three months up to five years. 

You have a guarantee of return as soon as your GIC matures, but if you request your deposit before the due date you will earn no interest on it. don’t waste your time. Choose the GIC only if you can really compromise this money or if you have an emergency fund to cover you. It is one of the best low-risk investments in Canada.

Annuities

Are you thinking about investing for your retirement? If so, annuities are a good choice for you. They are provided by insurance companies and have very low risk. You will buy this annuity with an investment called a premium, and the higher the premium, the higher your returns.

But it is not an option with good liquidity. Remember: you’re investing for retirement with low-risk investments in Canada, so expect to leave your money there for many, many years. It is not considered the best option to save for retirement, but it is a pretty safe one.

Do you know what TFSA and RRSP mean? Then follow the link below and learn what they can do for you and your investments.

TFSA vs RRSP

TFSA vs RRSP: Which is Right for You?

When it comes to saving money for your future, you have many options. Read on to learn what TFSA and RRSP mean and how to choose between them.

About the author  /  Aline Barbosa

Aline Barbosa is an editor, writer and learning-enthusiast. Passionate about music, books and human behavior. Curious about the unknown. Believer that learning is a life-long process.

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